A passion for transformational businesses

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TRANSCRIPTION WITH SPEAKERS
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[00:00] SPEAKER_00: Welcome to Canada's Podcast.
[00:05] SPEAKER_00: Hello, I'm Mario Toneguzi, managing editor of Canada's Podcast.
[00:10] SPEAKER_00: Joining me today for Calgary's Podcast is Robert Price, CEO of Bode.
[00:16] SPEAKER_00: Thanks for joining us today, Robert.
[00:18] SPEAKER_00: Great to be here, Mario.
[00:19] SPEAKER_00: And great to see you.
[00:20] SPEAKER_00: Great to see you too.
[00:21] SPEAKER_00: And let's maybe start this off by explaining to people what Bode is and what you do.
[00:27] SPEAKER_01: Yeah, Bode is a real estate transaction platform, so the ability to buy and sell residential
[00:34] SPEAKER_01: properties without an agent, with all the data, tools, functionality, you need to go from
[00:39] SPEAKER_01: the start, all the way to the finish, fully online, and saving typically in the $15,000
[00:47] SPEAKER_01: range per transaction.
[00:49] SPEAKER_01: So we're about ease, convenience, simplicity, modernization, and significant equity savings
[00:55] SPEAKER_01: for customers.
[00:56] SPEAKER_01: When did the Bode start?
[00:59] SPEAKER_01: So we launched in the Alberta market about three years ago.
[01:03] SPEAKER_01: So interesting timing.
[01:05] SPEAKER_01: We of course anticipated the global pandemic happening, and we started right at the beginning
[01:13] SPEAKER_01: of the pandemic.
[01:14] SPEAKER_01: So it was really interesting and uncertainty to deal with from a company perspective.
[01:21] SPEAKER_01: But so March 2020, we were Alberta-wide with our platform, have since expanded to British
[01:27] SPEAKER_01: Columbia and just launched in Ontario, starting with the GTA last week.
[01:33] SPEAKER_01: So that's been our short experience, but it's been a lot of fun, and we're now into, I
[01:41] SPEAKER_01: think, at the end of this month, we'll be over 700 transactions in Canada and growing
[01:46] SPEAKER_01: fast.
[01:47] SPEAKER_01: So it's been a lot of fun.
[01:47] SPEAKER_00: There will be a little bit of the motivation Robert behind this.
[01:53] SPEAKER_00: I like it.
[01:54] SPEAKER_00: And the genesis of this, I had concept and idea.
[01:58] SPEAKER_00: How did this come about?
[02:00] SPEAKER_01: And for me, it was actually a personal experience.
[02:02] SPEAKER_01: So it was going back to 2017.
[02:05] SPEAKER_01: I was selling my previous property, wanting to buy my next one, and I'm going through
[02:11] SPEAKER_01: the process of, of course, researching properties, looking at pricing, deciding where I want
[02:18] SPEAKER_01: to live, all of these things going on at the same time where I'm selling an end-buying,
[02:23] SPEAKER_01: and expected to have a really great online, high transparency, high-convidence experience,
[02:31] SPEAKER_01: and found that that just didn't exist as it does in the rest of my life, whether it's
[02:36] SPEAKER_01: booking travel, or logistics, or ordering groceries, or my banking, by selling cars, I
[02:45] SPEAKER_01: live my life like many Canadians do, fully online.
[02:49] SPEAKER_01: So I wanted that same experience, but of course, it didn't exist.
[02:52] SPEAKER_01: And I was working in a previous company, and so I was fully immersed professionally in
[02:58] SPEAKER_01: a different business.
[02:59] SPEAKER_01: But what basically ended up happening is I ended up picking up and calling my buddy, who
[03:08] SPEAKER_01: was a prominent agent in Calgary and saying, can you help me with this?
[03:13] SPEAKER_01: How do I, let's go forward with the traditional process.
[03:16] SPEAKER_01: What I found throughout the process was that I was doing a lot of the work, all the intellectual
[03:22] SPEAKER_01: work, like pricing, strategy, negotiations.
[03:26] SPEAKER_01: I actually found the property myself, the one that I wanted to buy online, and my agent
[03:33] SPEAKER_01: throughout was kind of just in the way.
[03:35] SPEAKER_01: He was an administrative person in my experience, even though good friend of mine, he was working
[03:40] SPEAKER_01: hard, the nature of how that works is so fragmented, it's so analog, it's hard to identify
[03:49] SPEAKER_01: what steps are coming next, and very opaque.
[03:51] SPEAKER_01: So I was in this headspace of, I'm doing all this work, and they're pushing paper, and
[03:58] SPEAKER_01: I'm writing a 50,000 or check at the end.
[04:01] SPEAKER_01: So I really saw two big problems.
[04:03] SPEAKER_01: The experience was really broken and analog and slow and lacking transparency, and then
[04:09] SPEAKER_01: the actual amount of money for that experience was crazy.
[04:14] SPEAKER_01: And so that gap is what I saw in my personal experience.
[04:18] SPEAKER_01: I don't know if you've bought sold properties recently, but that's where it came from for me,
[04:23] SPEAKER_01: and then a year later we sold our previous company, and I wanted to jump into this, and actually
[04:29] SPEAKER_01: my agent that worked with me sold his brokerage and joined me as a co-founder.
[04:35] SPEAKER_01: So that was really exciting to kind of connect that whole circle.
[04:40] SPEAKER_00: Do you have plans for future growth in different markets across the country?
[04:47] SPEAKER_01: Yeah, so we're all brutal wide right now, and BC wide, in the GTA plan to expand
[04:54] SPEAKER_01: through more growth throughout Ontario, through where the market pulls us.
[05:01] SPEAKER_01: That's really why we picked Toronto next.
[05:03] SPEAKER_01: We had a lot of people saying, we love your model, love your data, want the ability to
[05:09] SPEAKER_01: leverage your platform.
[05:12] SPEAKER_01: So come bring that value, especially in the Ontario market, where there's
[05:17] SPEAKER_01: five percent commissions, some of the highest in Canada, and super high property values as well,
[05:24] SPEAKER_01: between 1.2 million on average. So commission savings there are even higher,
[05:30] SPEAKER_01: they'd be more like 30 to 40 thousand dollars, which is significant when you consider that
[05:35] SPEAKER_01: as a proportion of your equity can typically make up 20 to 30 percent of your equity.
[05:40] SPEAKER_01: So that's where we are now excited to be in that market, I've seen some early traction as well
[05:48] SPEAKER_01: in terms of interested listings, and then we'll expand throughout the rest of Canada where
[05:55] SPEAKER_01: Canadians want us, but also have the US expansion in our headspace and in our road map, I should say,
[06:03] SPEAKER_01: or in the US there's a lot of similar challenges. As you may know, the commissions are even higher,
[06:10] SPEAKER_01: five to six percent there, two agents involved in both sides of the transactions.
[06:17] SPEAKER_01: So that's a very similar dynamic to Canada. The regulations are similarly at the state level,
[06:23] SPEAKER_01: and provincial level like Canada. So a lot of similarities in the market there, and we've had
[06:29] SPEAKER_01: a number of American investors and contacts and partners that want us to expand south of the
[06:34] SPEAKER_01: border as well. So in the next 12 months, we'll be seriously looking at that opportunity.
[06:41] SPEAKER_01: So what were you doing before this? Well, I was an executive company called Axia, so it was a
[06:49] SPEAKER_01: fiber optic business based the reimagining what a connection to the cloud should be before the
[06:56] SPEAKER_01: cloud existed. So let's going back to 2000 as when this company really kicked off, and we kind of
[07:03] SPEAKER_01: took the view of if you can be, you know, as a consumer, you want the choice of all of the different
[07:12] SPEAKER_01: applications that you can leverage using a network. You don't want a vertical package. You don't want
[07:18] SPEAKER_01: to pay $200 a month if you're a consumer at home for a TV phone and internet. You actually just want
[07:25] SPEAKER_01: a high-performing connection that allows you to purchase all of the other ways that you can
[07:32] SPEAKER_01: consume content, entertainment, productivity tools, and a long list. And of course, this is now
[07:38] SPEAKER_01: obvious today, but back in the early 2000s before the cloud really was understood, we were quite
[07:46] SPEAKER_01: a ways ahead of seeing that that was going to happen. And so our business is all about building
[07:51] SPEAKER_01: in fiber to every premise, government, businesses, residential across North America, Europe, and Asia.
[07:58] SPEAKER_01: So we had an international and growing business, which is a lot of fun, working with different
[08:03] SPEAKER_01: governments, different cultures, and fundamentally solving the same challenge, which is the existing
[08:09] SPEAKER_01: telecos are not going to upgrade their network unless they're forced to because they make too much
[08:14] SPEAKER_01: money to do it the old way through Copper, which was designed for a phone call. And we came in with
[08:19] SPEAKER_01: this fiber solution that had no compromises and ultimately is becoming more than norm today
[08:27] SPEAKER_01: to connect everybody on the global grid. So that gave me a lot of experience in a traditional
[08:32] SPEAKER_01: industry in seeing the ability to really empower consumers, give them that choice, and unlock
[08:40] SPEAKER_01: their capability to control their experience. A lot of those attributes were inspiration for
[08:47] SPEAKER_00: the boat as well. Now, I might be way out to lunch in my memory as I get older, fails me, but
[08:57] SPEAKER_00: wasn't your family involved in groceries in the grocery industry?
[09:03] SPEAKER_01: Yes, so that's my dad, his brothers and my grandparents started Suntera.
[09:09] SPEAKER_01: Yeah, so that's their, I deserve no credit. I've heard a lot about it. I've learned from them a lot,
[09:15] SPEAKER_01: never been directly involved in the business, but a big part of the inspiration that I get in terms
[09:23] SPEAKER_01: of learning, learning different industries and seeing a family that built something from absolutely
[09:27] SPEAKER_01: nothing into a really successful international business that has wholesale side. And then of course,
[09:34] SPEAKER_01: if you're in Calgary or Edmonton and now Red Deer, you probably experienced the retail side as well.
[09:39] SPEAKER_01: So, very cool to have such an entrepreneurial family. And whether it's in my blood or through
[09:46] SPEAKER_01: training and being inspired by these guys, a big part of what made me excited to be an entrepreneur.
[09:53] SPEAKER_00: What do you think you've learned from your family and your father in running a business and
[09:58] SPEAKER_00: how to run a successful business?
[10:03] SPEAKER_01: That's a long list. I would say, to me, a big part of it is the focus on the customer.
[10:13] SPEAKER_01: It's very easy to get locked into or biased towards making money or satisfying your shareholders or
[10:21] SPEAKER_01: only focused on your employees. I have this view and I learned this over the years from family
[10:29] SPEAKER_01: and in school into some degree, but it's actually about creating an amazing customer value and
[10:34] SPEAKER_01: experience. If your customers are really happy, they'll continue to be great. Customers of yours,
[10:40] SPEAKER_01: of course, they'll tell other customers, but they'll also make your employees and your team
[10:44] SPEAKER_01: really happy because they're creating positivity in somebody's life no matter what that is. And then
[10:52] SPEAKER_01: of course in the home building or the residential real estate space, these are real transactions.
[10:59] SPEAKER_01: These are big life impacting deals where 70% of Canadians that own property have the majority of
[11:08] SPEAKER_01: their net worth tied up in their home. So it's really that focus on customer value and then that
[11:16] SPEAKER_01: creates an amazing employee experience as well and those two feed off each other. And then upon
[11:21] SPEAKER_01: that success, the financial growth will come and the shareholders will be happy. So I think that's
[11:27] SPEAKER_01: one key thing. Another key thing is sheer work ethic. Just never giving up. No, I saw in my own
[11:37] SPEAKER_01: house, I saw up at 6 a.m. every night at home, you know, whatever around dinner time of 12, 13, 14
[11:44] SPEAKER_01: hour days, weekends. I saw, you know, going on six week international trips, working with governments,
[11:52] SPEAKER_01: working with other businesses around the world, and just an unbelievable, relentless drive for success.
[12:01] SPEAKER_01: So I have this, I have this benchmark that maybe is an advantage to be in the sense of I've seen
[12:09] SPEAKER_01: that level of I've got a tangible feel for what that actually is. And I knew that coming into this
[12:15] SPEAKER_01: this company that I started knowing it was going to take that, but also relishing the challenge
[12:22] SPEAKER_01: and three years and it certainly has taken that. And I, you know, you find as you push yourself
[12:28] SPEAKER_01: to your limits, what your limits are, which is really to me a big part of growing as a person is
[12:36] SPEAKER_01: continuously putting yourself outside of those comfort zone, outside of your comfort zone and
[12:41] SPEAKER_01: pushing through these barriers and seeing what you're truly made of. So that's been, that's been a
[12:47] SPEAKER_01: lot of fun, especially considering capital markets are all over the place. Real estate markets are
[12:52] SPEAKER_01: all over the place. Global pandemics, uncertainty, all of that happening over this three year period.
[12:58] SPEAKER_00: Yeah, I think it's a lot of time to come in and start a business.
[13:05] SPEAKER_01: Yeah, that's right. So no, I'm highly appreciative of it and I kind of think of it as
[13:11] SPEAKER_01: it's a really good opportunity for me to take that learning and apply it in a really positive way
[13:20] SPEAKER_01: that can impact the world in a truly, you know, future forward way that helps people. And that's
[13:27] SPEAKER_00: where my biggest passion comes from. Yeah, excellent. Now, doing, you know, obviously, you have
[13:34] SPEAKER_00: presence in BC and Ontario as well, but, but you're based here in Calgary. I'm just curious,
[13:41] SPEAKER_00: from your perspective, how do you view the current business conditions in the city, you know,
[13:49] SPEAKER_00: from the standpoint of running and owning and operating a business? How would you describe what
[13:55] SPEAKER_01: Calgary is like these days? It's really exciting. I'm sure you're experiencing that in your job as well,
[14:03] SPEAKER_01: seeing, I was actually just down in Austin representing Alberta's fellowship with Alberta
[14:10] SPEAKER_01: innovates, the South by Southwest Conference. So there's 50 companies selected. And I was expecting,
[14:18] SPEAKER_01: you know, being in the tech community that's growing and new in Calgary. I would know most of these
[14:22] SPEAKER_01: companies only knew two or three of them. Yeah. So I was able to spend five days, you know, learning
[14:29] SPEAKER_01: with learning from all these other entrepreneurs getting their businesses and seeing seeing what the,
[14:36] SPEAKER_01: you know, the drive that we have in Alberta, I think is, is a weapon of ours. I think it's a big
[14:42] SPEAKER_01: advantage that we have. We're bold, you know, we're straightforward, we're high integrity,
[14:47] SPEAKER_01: but we're also helpful to each other. So there's this really positive community that's being built.
[14:53] SPEAKER_01: And I think it's a critical aspect of new company success and diversification is literally the
[15:00] SPEAKER_01: ability for people to say, I'm going to help you, however I can, and genuinely mean it, even though
[15:05] SPEAKER_01: they're super busy, and we're all very busy with everything that's going on, or professional and
[15:10] SPEAKER_01: personal lives, that DNA that we have, I think is a huge, when you couple that with our drive and our
[15:19] SPEAKER_01: boldness, I think is a really powerful recipe for success for new companies. So it's an awesome city
[15:25] SPEAKER_01: to live in and work given and be part of leading the evolution of our diversified strategy.
[15:33] SPEAKER_00: Okay, then. Now, obviously, you know, running a business, you know, it's always on your mind.
[15:41] SPEAKER_00: You know, it's almost a 24-7 thing. What do you do to, I guess, to relax or de-stress or
[15:51] SPEAKER_00: what's some of your interests and passions outside of running this business?
[15:57] SPEAKER_01: Yeah, it's a great question because I find that it's really easy to become obsessed with it
[16:02] SPEAKER_01: because you're so passionate about it and it's consuming and there's always the next challenge
[16:06] SPEAKER_01: and you have a great team and, you know, you have all these things that make it really exciting.
[16:12] SPEAKER_01: But I've never thought of business as life. I've always thought of it as one part of my life,
[16:20] SPEAKER_01: an important part and a passion, but it's never more important than family. It's ever more
[16:25] SPEAKER_01: important than personal relationships in my own health. So I really believe in a balance and
[16:33] SPEAKER_01: for me, I'm active. I've played sports, probably more addicted to sports than to business. I've
[16:40] SPEAKER_01: been, I played tennis at a high level. I played hockey competitively when I was younger. I love to
[16:45] SPEAKER_01: ski, being outside to answer your question directly. I find it's really liberating. I find it's
[16:53] SPEAKER_01: you kind of feel the pressure in your body come out of you and you're breathing this beautiful
[16:59] SPEAKER_01: Canadian air that we are lucky to have. And then, yeah, spending a lot of time with my fiance.
[17:06] SPEAKER_01: I'm a love traveling. We love food. We're very social. So we love hosting people for dinners.
[17:12] SPEAKER_01: But I really value that balance and find that waking up early, you know, 6am,
[17:21] SPEAKER_01: getting a workout in, essentially every morning before work is a big, is a big
[17:28] SPEAKER_01: energizer for me, both mentally and physically. So I'm very much in that headspace in my
[17:36] SPEAKER_01: own life. Then from a team perspective, I'm always a fan of having people take as much vacation
[17:43] SPEAKER_01: as they actually have, not just grind to grind forever because that's where burnout happens.
[17:51] SPEAKER_01: So I want people to take their vacation and to take that time away because when they're working,
[17:57] SPEAKER_01: that's where the performance and intensity will show up.
[18:00] SPEAKER_00: Do you think that's what one of the biggest mistakes that entrepreneurs and business owners
[18:06] SPEAKER_00: make is that they don't take that time for themselves. And they do burn out of it, but they also
[18:15] SPEAKER_00: are not as productive as you invest in some time in yourself. The investment comes in productivity
[18:26] SPEAKER_01: wise. Right? Yeah. I think it's a great question. I don't think there's one answer.
[18:31] SPEAKER_01: For me, this balance really works for me. I know other entrepreneurs that will do literally go
[18:39] SPEAKER_01: two years straight and work every day and work 100-hour weeks. And they've built successful
[18:46] SPEAKER_01: companies. So I think it kind of comes back to what is the goal of the business? If the goal of
[18:51] SPEAKER_01: the business is create some value in two to three years and flip it and sell it and make some
[18:56] SPEAKER_01: make some money. A lot of entrepreneurs think that way and that's totally all good.
[19:02] SPEAKER_01: Not my headspace. My headspace is green, long term, sustainable value.
[19:09] SPEAKER_01: So I'm acutely aware of there's times you need to really wrap up. And yeah, you might work three
[19:15] SPEAKER_01: months straight because it's required, but make sure that you build then these down times as well.
[19:22] SPEAKER_01: You have some pacing there in it for long-term success. You're not in it to make a quick buck.
[19:30] SPEAKER_01: In my case. So I think it's to use their own, but certainly to answer your question directly,
[19:36] SPEAKER_01: I think a lot of entrepreneurs can get pulled into that vortex of being totally obsessed with
[19:42] SPEAKER_01: business and it impacts the relationships and health. And whenever I can help people kind of
[19:48] SPEAKER_01: think more critically about that all. And they're asking for advice. They'll certainly
[19:53] SPEAKER_01: talk about balance because I think that's important. All right, wonderful. Thanks very much, Robert,
[19:59] SPEAKER_01: for joining us today. Great to be here, Marywe. And yeah, enjoyed it a lot. Looking forward to
[20:05] SPEAKER_00: chat with you soon. All right, thank you. That was Robert Price. CEO of Boad. I'm Mario Tonigusi
[20:12] SPEAKER_00: managing editor of Canada's podcast today. Calgary's podcast. Thanks for joining us.